Trader's Comment: Palm oil futures ended lower after a choppy trading.

Palm oil futures ended lower after a choppy trading. Benchmark Aug09 initially fell to the morning low of 2603 after opened RM13 higher at 2638 but was quick to bounce back again and managed to close at 2640 before morning break. However, it immediately gapped down again when second session resumed trading and began to hover between 2619-2586 level before it finally settled RM27 lower at 2598. External markets were rather mix today as eCBOT soy oil inched lower while Dalian palm ended slightly higher. Traders were still cautiously waiting for any fresh clues on the end May stock level, even though the USDA attache in KL had highlighted in their report, stating that a small increase in CPO output could not offset the sharp reduction in carry-in stocks and resulted in lower level of stock.

Breaking News-RTRS-UPDATE 1-Chinese buyers wash out 3 U.S. soy cargoes-traders

SINGAPORE/BEIJING, June 1 (Reuters) - Chinese soybean importers have agreed with suppliers to scrap deals for two to three 60,000-tonne U.S. cargoes in the past week as prices rally and inventories pile up, two traders said on Monday.
Two of the estimated three cargoes due to have been shipped from New Orleans have instead been resold on the domestic U.S. market, where CBOT soybean futures rose to an eight-month top last week.

Trader's Highlight

DJI-NEW YORK, June 1 (Reuters) - U.S. stocks rose on Monday, sending the S&P 500 to its highest close in seven months, as reassuring economic data reinforced hopes that demand will stabilize, while General Motors' long-expected bankruptcy filing ended uncertainty about the automaker's fate.

Data showing that the U.S. manufacturing sector contracted in May at a slower rate than expected fueled hopes the U.S. recession that began in December 2007 is moderating.

Investors were also encouraged by signs of manufacturing stabilization from China, with demand from emerging markets for commodities and other resources seen leading a revival of global growth.

The Dow Jones industrial average <.DJI> shot up 221.11 points, or 2.60 percent, to 8,721.44. The Standard & Poor's 500 Index <.SPX> gained 23.73 points, or 2.58 percent, to 942.87. The Nasdaq Composite Index <.IXIC> jumped 54.35 points, or 3.06 percent, to 1,828.68.

NYMEX-NEW YORK, June 1 (Reuters) - U.S. crude futures settled at a near seven-month high on Monday as upbeat economic reports lifted global stocks and Wall Street while a weakened dollar attracted investors to oil and other commodities.

"The strength of the stock market and the weakness of the dollar are combining to support crude futures.

On the New York Mercantile Exchange, July crude settled up $2.27, or 3.42 percent, at $68.58 a barrel, the highest settlement since Nov. 4's $70.53. It traded from $66.23 to $68.68, the highest intraday price since $70.46 on Nov. 5.

CBOT-SOYBEANS - July up 34-1/2 cents per bushel at $12.18-1/2.

Rallies to eight-month high on shrinking soy supplies, slow plantings, falling dollar, gains in equities and higher crude oil.

CBOT-SOYOIL - July up 1.40 cents per lb at 40.45. Support from stronger crude oil and soybeans, falling dollar as equities rise.

FCPO-JAKARTA, June 1 (Reuters) - Malaysian palm oil futures rose 2.5 percent to their highest close in nearly two weeks, supported by a rally in crude oil and rival soybean prices, traders said.

The benchmark August contract on the Bursa Malaysia's Derivatives Exchange settled up 65 ringgit to 2,625 ringgit ($756.48) per tonne, the highest closing level since May 19. Overall volume was 12,801 lots of 25 tonnes each.

REGIONAL EQUITIES-BANGKOK, June 1 (Reuters) - Singapore shares <.FTSTI> surged
more than 2 percent to close near an 8-month high on Monday, leading rallies on other Southeast Asian stock markets propelled by higher oil prices, analysts said.

Malaysia's index <.KLSE> rose 1.7 percent to close near a 9-month high, with Maybank up 5 percent and mobile phone company Axiata Group 4.4 percent higher.

Singapore's Straits Times Index <.FTSTI> rose 2.2 percent to its highest since October 2, with developer CapitaLand surging 5.5 percent and lender DBS Group Holding climbing 2.5 percent.

DJI Daily: Ends of Conslidation

Market eked out from the range trading show that consolidation phase has come to the end. We are now looking for the upside resistance at 9000-9200. To the downside, support is looking at 8200.

KLSE Daily: Bulls Waltz higher

Bull was enjoying to Waltz higher. Currently, we continue to look for the upside resistance at 1070-1080. To the downside, support is adjusted to 1050.

FKLI Daily: Bulls run likely to continue

Bulls run looks likely to continue following a fresh high was achieved. As for now, we are eyeing for the upside resistance at 1080-1090. While, downside support is pegged at 1060-1050.

FCPO Daily: Gaining ground

Bulls had further gaining ground to stabilise and protect its territory. A firm close above 2600 mark has showing little sign of recovery from the recent sell down. However, we yet to identify the resume of up-trend as more effort is still needed to form a concrete base. As for now, we are looking for the immediate upside resistance at 2650-2665 followed by 2730-2760. To the downside, support is pegged at 2594-2585 (gap left over on 1/6/2009) followed by 2490-2480.